For all news business and renewals effective 1st July, 2017 insureds will be liable to pay terrorism levies, if their scheme meets the Australian Reinsurance Pool Corporation (ARPC) criteria.
In short, some mixed-use commercial and residential strata buildings will see new terrorism levies of up to 16%.
These changes broaden the definition of eligible property to include buildings with at least 20% of floor spaces being used for commercial purposes, or schemes which have a single building sum insured of at least $50million (whether used for commercial or other purposes).
At Strata Community Insurance we will continue to display terrorism levies as a separate line item on insurance schedules to ensure transparency and help manage costs.